Fidelity launches AAA-rated tokenized money fund

Fidelity has launched the Fidelity USD Digital Liquidity Fund (FILQ), a tokenized money market fund issued on Syngnum Bank’s tokenization platform. Chainlink will provide on-chain data feeds and Moody’s assigned the fund a AAA credit rating.

FILQ is designed to offer round-the-clock liquidity and yield for corporate treasuries and crypto-native firms that need instantly redeemable cash-like instruments. The fund’s returns will come from interest income on reserves invested in U.S. Treasury securities.

Syngnum provides the regulated banking and tokenization framework for issuance and custody. Chainlink’s oracle services will feed pricing and valuation data to the fund’s on-chain systems for minting, redemption and reporting.

Market data show the tokenized money market fund segment grew from about $4 billion to roughly $15.2 billion since 2025. Asset managers and banks have introduced similar products that route investor cash into short-term U.S. government debt and offer on-chain access to yield.

Recent fund flows have varied across offerings. Several products, including Circle’s USYC, Ondo’s USDY, BlackRock’s BUIDL and Sky Protocol’s sUSDS, recorded net inflows in recent months. Other yield products that rely on decentralized finance strategies saw outflows, with Ethena’s USDe recording about $1.8 billion in redemptions.

FILQ’s structure links regulated custody and traditional Treasury holdings with on-chain settlement mechanics. Firms evaluating tokenized funds are comparing credit ratings, transparency of holdings, on-chain redemption features and the operational track records of issuers and infrastructure providers.

Regulatory and operational practices differ by issuer, including custody arrangements, redemption mechanics and the exact mix of Treasury holdings. Fidelity’s FILQ adds another regulated option for institutions seeking Treasury-based yield accessible on blockchain rails.